Fresh Details Emerge On CBEX Operation In Nigeria

The Securities and Exchange Commission (SEC) has announced that Crypto Bridge Exchange (CBEX) is not authorized to function as a digital assets exchange in Nigeria.

The SEC has cautioned the public against engaging in transactions with this platform.

In a notice issued on Thursday, April 17, the commission indicated that CBEX, which operates under several names including ST Technologies International Ltd and Smart Treasure/Super Technology, has been involved in unauthorized investment solicitation, promising unrealistically high returns to unsuspecting investors in Nigeria.

“The Commission wishes to clarify that neither CBEX nor any of its affiliates have ever received registration from the Commission to operate as a digital assets exchange, solicit public investments, or engage in any other activities within the Nigerian capital market,” SEC stated.

Naijaonpoint reports that the digital trading asset platform had offered to provide investors with a 100 percent Return On Investment within 30 days.

However, its business practices are now under investigation due to allegations of fraud and misleading conduct.

Reports suggest that the platform has been presenting falsified withdrawal records to conceal the challenges users face when attempting to access their funds.

The capital market regulator noted that initial investigations have shown that CBEX conducted promotional activities designed to create a misleading sense of legitimacy.

The platform allegedly attracted investors with promises of guaranteed high returns, failed to fulfill withdrawal requests, and has since closed its physical offices in response to increasing complaints.

The commission indicated that in accordance with Section 196 of the Investments and Securities Act 2025, it will work in conjunction with appropriate law enforcement agencies to implement enforcement measures against CBEX, its affiliates, and promoters.

The SEC also cautioned the public to refrain from investing in organizations that promise unrealistic returns or operate unregistered digital investment schemes.

In the statement, SEC Director-General Emomotimi Agama announced that the commission is initiating a more comprehensive and coordinated enforcement strategy targeting illegal and unregistered investment schemes, often referred to as Ponzi schemes.

He emphasized that the recently enacted Investments and Securities Act 2025 provides the SEC with enhanced authority to take legal action against operators of such schemes, including those involved in digital and virtual assets.

“Promoters of CBEX will not go scot-free. The new law gives the Commission the legal backing to protect investors and restore market confidence,” Agama stated.

He reaffirmed the SEC’s dedication to fostering innovation in the financial services sector, while underscoring the necessity for all innovations to take place within a regulated framework that prioritizes investor protection and the integrity of the market.

Meanwhile, the Federal Government expressed its support for the victims of the digital investment platform CBEX on Wednesday, emphasizing the need for Nigerians to unite in combating the increasing prevalence of Ponzi schemes in the nation.